Secondary Trading with CMU Metering Aggregation Rules

This page provides full details of the proposed change, relevant dates and decisions.

What is the issue?

If Capacity Market Units (CMUs) secondary trade without setting up Capacity Market (CM) Aggregation Rules, and there was to be a stress event prior to CMUs setting up meter aggregation rules,  the Capacity Market Settlement Body (CMSB) would automatically produce the maximum penalty charge as part of the penalties process. Once this has occurred the CM Rules intentionally do not allow any retrospective adjustments to such penalties.

What is the proposed solution?

The proposed legal text to CP369 will:

• Insert a requirement that if a secondary trade is submitted to the EMR Delivery Body (EMR-DB) after a T-1 Auction but before the start of a Delivery Year, meter aggregation rules must be set up for the transferee CMU five Working Days before the start of a Delivery Year. In the legal text this is achieved via the definition of an Approved Metering Solution, including CM Aggregation Rules.
• Insert a requirement that if a secondary trade is submitted to EMR-DB within a Delivery Year, meter aggregation must be set up for the transferee CMU before submitting the transfer to the EMR-DB for registration.